The Central Consumer Protection Authority (CCPA) has initiated a comprehensive probe into the consumer complaint resolution practices of Ola Electric. This move comes in response to concerns about the effectiveness of the company’s complaint resolution system.

What Happened: The Consumer Affairs Ministry instructed the Director General (DG) Investigation, the investigative wing of the CCPA, to start the investigation last week, as reported by Business Today. The DG Investigation will examine the nature of complaints and any reported service deficiencies against Ola Electric.

The probe was triggered when the government authorities found Ola Electric’s claim of resolving 99.1% of complaints unsatisfactory, thereby raising questions about the accuracy of its consumer service processes. Ola Electric did not respond to Benzinga India’s queries by the time of publication.

In an earlier stock exchange filing, Ola Electric had stressed its robust mechanism for handling complaints related to its vehicles. Harish Abichandani, CFO of Ola Electric, stated that 99.1% of the 10,644 complaints received from the CCPA were resolved satisfactorily as per Ola Electric's robust redressal mechanism.

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Of the more than 10,000 complaints received, 3,364 were about slow service and repairs, 1,899 related to delayed deliveries of Ola’s electric scooters, and 1,459 concerned unfulfilled service promises, contributing to significant consumer dissatisfaction. Other complaints highlighted misleading advertisements that overstated the performance, features, and availability of the company’s products.

The DG Investigation is expected to submit the report to CCPA in 15 days, after which a decision will be taken, the report added. Earlier, the authority had alleged Ola Electric of violating consumer rights, running misleading advertisements, and unfair trade practices. The company was given fifteen days to respond to the notice.

In its investors’ conference call last week, the company’s CEO Bhavish Aggarwal commented on the rising consumer complaints. Aggarwal said the reported figure of 80,000 per month was "not bad for a 8,00,000 unit in operation". 

Price Action: Ola’s shares were trading flat at ₹70.39 on Monday afternoon after hitting a record low of ₹69.54 earlier in the day.

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